Building a house in Luxembourg: the 6 key steps

Building a house in Luxembourg is the dream of many couples. It is also an adventure that can quickly turn into a nightmare. From the design of your future home to the handing over of the keys, this article summarizes the steps to take, the financial incentives you can apply for and the main pitfalls to avoid.

How to build a house in Luxembourg


1 - Choose the best serviced and buildable land

Choosing a plot of land for your future home is a difficult equation to solve. Budget, size, schools, shops, and proximity to work are the criteria generally considered. But look further afield. If you like a plot of land, explore the surrounding area to check for noise pollution (trains, traffic) or chemical pollution (factories, agricultural land). Finally, visit the area when it is most lively, such as during the week and in the late afternoon.


2 - Find out about the financial incentives available

The price of building land varies considerably from one commune to another. So don't just fall in love with a piece of land. Compare the offers and establish a reasoned ranking.

To increase your budget or reduce your monthly loan payments, a helping hand is always welcome. The Luxembourg government encourages the construction of sustainable houses through substantial incentives that can be combined. Check your rights before calculating your budget.


3 - Budgeting for the long term

You now know how much aid you can deduct from the total cost of your work and, if applicable, from your loan repayments. Borrowing to buy a home is often a very long-term commitment. Think ten or twenty years ahead and imagine your future life: career change, birth, and education of children, etc. Assess your ability to repay and make sure that, if necessary, the sale of your property will enable you to pay off your debt. All that's left is to make an appointment with the bank... and to play the competition!


4 - Builder or architect in Luxembourg: the importance of being well accompanied

Recruiting good craftsmen and supervising your construction site requires solid skills and a great deal of availability. Safe and economical, the builder's turnkey solution is interesting if your project is rather simple. On the other hand, an architect will propose personalized plans and allow you to keep control of the work. This option is very useful if your project is likely to change. In addition, the government offers a bonus for architect's fees that can be added to the construction aids.


Remaining vigilant before and during the construction of your home in Luxembourg


5 - Anticipating a budget overrun

Using a builder protects you, in principle, from unforeseen expenses. On the other hand, if you opt for a project manager (architect or design office), you need to consider the budgetary uncertainties. In any case, having a reserve will allow you, when you move in, to finance certain details that you might have forgotten, to add some finishing touches or to fit out the exterior...


6 - Tracking down defects

It is often said that the devil is in the detail. Thus, faulty joints around joinery or sanitary fittings, uneven floors, poorly laid partitions are signs of a shoddy construction that should be detected, if possible, during the inspection of the property. If necessary, an independent expert will offer you an exhaustive inspection. Moreover, his report will facilitate your recourse in the event of a dispute.


Building a house in Luxembourg: an investment


You now have all the keys in hand to complete your project. Once the construction is completed, you will finally be able to fully enjoy the house of your dreams. What's more, you'll own an asset that you'll enjoy maintaining and enhancing. In a tight market like the Grand Duchy's, a property is a capital asset, a solid foundation on which you can later build a new project.